Which of the Following Statements Is CORRECT

question 108

Multiple Choice

Which of the following statements is CORRECT?

• A) Retained earnings,as reported on the balance sheet,represent the amount of cash a company has available to pay out as dividends to shareholders.
• B) 70% of the interest received by corporations is excluded from taxable income.
• C) 70% of the dividends received by corporations is excluded from taxable income.
• D) Because taxes on long-term capital gains are not paid until the gain is realized,investors must pay the top individual tax rate on that gain.
• E) The corporate tax system favors equity financing,as dividends paid are deductible from corporate taxes.

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Definitions:

Virtue

Moral excellence and righteousness; qualities of moral goodness or merit.

Communities

Groups of people living in the same area or having a particular characteristic in common, forming a social, cultural, or economic network.

Ruling Classes

The segment of society that holds authority and power, typically governing or making significant decisions for a country or organization.

Ethics Flexibility

The concept of being adaptable in applying ethical principles to varied situations, recognizing that different contexts may require different moral considerations.